The virtual reality market is estimated to grow from USD 1.37 Billion in 2015 to USD 33.90 Billion by 2022, at a CAGR of 57.8% between 2016 and 2022. The base year considered for the study is 2015, and the market size forecast is given for the period between 2016 and 2022.

The objectives of the study are as follows:

To define, describe, and forecast the global virtual reality (VR) market on the basis of VR component, technology, device type, application, and geography

To forecast the market size for various segments with regard to four main regions, namely, the North America, Europe, Asia-Pacific, and Rest of the World (RoW)

To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)

To strategically analyze the micromarkets with respect to individual growth trends, future prospects, and contributions to the total market

To use the Porters five forces model to gauge the entry barriers to this market, along with the analysis of the value chain and market roadmaps to study the evolution and timeline of the virtual reality market

To strategically profile key players, comprehensively analyze their market share and core competencies, and describe the competitive landscape of the market

To analyze competitive developments such as joint ventures, mergers & acquisitions, new product developments, and research & development in the virtual reality market

The research methodology used to estimate and forecast the virtual reality market begins with capturing data on key vendor revenues through secondary research. The vendor offerings are also taken into consideration to determine the market segmentation. The bottom-up procedure was employed to arrive at the overall size of the global virtual reality market from the revenues of the key players. After arriving at the overall market size, the total market was split into several segments and subsegments which are then verified through primary research by conducting extensive interviews with industry experts such as CEOs, VPs, directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. Some of these secondary sources include organizations and associations such as VR/AR Association, Global Virtual Reality Association, and AsiaVR Association among others.

The breakdown of profiles of primary respondents is depicted in the figure below.

Figure 1 Overview of the Micromarkets CoveredFigure 2 Global Virtual Reality Market: Research DesignFigure 3 Market Size Estimation Methodology: Bottom-Up ApproachFigure 4 Market Size Estimation Methodology: Top-Down ApproachFigure 5 Data TriangulationFigure 6 Global Virtual Reality Market, 20132022 (USD Billion)Figure 7 Market, By Device Type, 2015 vs 2022Figure 8 Consumer Application Expected to Witness Highest Growth in Market Between 2016 and 2022Figure 9 North America Had Highest Market Share for Virtual Reality in 2015Figure 10 Region-Wise Market Size of Top 2 Virtual Reality Applications, 2015Figure 11 Attractive Opportunities for the Market (20162022)Figure 12 China Expected to Account for the Largest Share of Market in APAC, By 2022Figure 13 U.S. to Hold the Largest Market By 2022Figure 14 U.S., China, Japan, and South Korea Expected to Grow at the Highest Rate in the Virtual Reality MarketFigure 15 The Consumer and Commercial Applications to Dominate the Market During the Forecast PeriodFigure 16 Consumer Vertical to Have A Promising Future in the APAC Region Between 2016 and 2022Figure 17 Virtual Reality Market, By GeographyFigure 18 History of Virtual RealityFigure 19 Increasing Adoption of Head-Mounted Displays in Various Applications is A Driving Force for the Growth of the VR MarketFigure 20 Value Chain Analysis of Virtual Reality (2015): Major Value Added During Research & Product Development and Manufacturing StagesFigure 21 Porters Five Forces Analysis: Bargaining Power of Buyers Had the Highest ImpactFigure 22 Virtual Reality Market: Porters Five Forces AnalysisFigure 23 Increase in the Number of Suppliers Would Reduce Their Bargaining PowerFigure 24 Bargaining Power of Buyers is High Owing to the Increase in the Number of Suppliers in the MarketFigure 25 High Capital Requirement is A Major Challenge for New EntrantsFigure 26 Threat of Substitutes has A Low Impact Due to Competitive PricingFigure 27 Intensity of Rivalry is High Due to A High Number of Existing PlayersFigure 28 Virtual Reality Market for Software Components Estimated to Grow at the Highest Rate Between 2016 and 2022Figure 29 Virtual Reality Market, By TechnologyFigure 30 Market for Semi-Immersive and Fully Immersive Technologies Expected to Grow at the Highest Rate Between 2016 and 2022Figure 31 Market for Head-Mounted Displays Expected to Grow at the Highest Rate Between 2016 and 2022Figure 32 Virtual Reality Market for Consumer Application Likely to Grow at the Highest Rate By During the Forecast PeriodFigure 33 Geographic Snapshot: APAC Market to Grow at the Highest Rate During the Forecast PeriodFigure 34 The U.S. to Lead the Market Between 2016 and 2022Figure 35 Virtual Reality Market Overview in North America, 2015Figure 36 Market Overview in Europe, 2015Figure 37 Virtual Reality Market Overview in APAC, 2015Figure 38 Companies Adopted New Product Launches & Developments as the Key Growth Strategy Between 2013 and 2016Figure 39 Product Analysis of Major Companies in the MarketFigure 40 Market Evaluation Framework: New Product Launches & Developments Fueled Market Growth Between 2013 and 2016Figure 41 Battle for Market Share in the Market: New Product Launches & Developments and Partnerships Were the Key StrategiesFigure 42 Geographic Revenue Mix of Major PlayersFigure 43 Oculus VR, LLC: SWOT AnalysisFigure 44 Sony Corporation: Company SnapshotFigure 45 Sony Corporation: SWOT AnalysisFigure 46 Samsung Electronics Co., Ltd: Company SnapshotFigure 47 Samsung Electronics Co., Ltd.: SWOT AnalysisFigure 48 HTC Corporation: Company SnapshotFigure 49 HTC Corporation: SWOT AnalysisFigure 50 Eon Reality, Inc.: SWOT AnalysisFigure 51 Google Inc.: Company SnapshotFigure 52 Google Inc.: SWOT AnalysisFigure 53 Microsoft Corporation: Company SnapshotFigure 54 Microsoft Corporation: SWOT AnalysisFigure 55 Vuzix Corporation: Company SnapshotFigure 56 Vuzix Corporation: SWOT Analysis

The virtual reality market size, in terms of value, is expected to grow from USD 1.37 Billion in 2015 to USD 33.90 Billion by 2022, at a CAGR of 57.8% between 2016 and 2022. The increasing use of head-mounted displays (HMD) in the entertainment and gaming sector, decline in the prices of displays and other hardware components of HMDs, and use of VR for training and simulation in the defense sector are the major driving factors for the virtual reality market.

This report segments the virtual reality market based on component, technology, device type, application, and geography. The market is further segmented on the basis of geography into various countries. The consumer application is expected to hold the largest market share during the forecast period. The consumer application in the market which includes gaming and entertainment applications accounted for the largest share. The large share can be attributed to the high penetration of this sector in the gaming industry. A major factor that is driving the growth of the virtual reality market includes the penetration of HMD in the gaming and entertainment industries. The commercial application would be the second-largest market during the forecast period, owing to the increasing demand for VR devices in the retail sector and for the purpose of educational training. The increased interest of large technology companies in VR has been one of the major driving factors for the growth of the market.

North America is expected to hold the largest size of the virtual reality market, while the market in Asia-Pacific is estimated to grow at the highest rate. Countries such as China, India, Japan, and South Korea in the APAC region are witnessing a huge demand for head-mounted displays for the gaming application. The increased number of start-ups and the increased acceptance for the VR technology in the APAC region are the market drivers.

Head-mounted displays are increasingly being used for applications such as consumer, commercial, medical, industrial sectors among others. In advanced gaming, HMD facilitates quality effects and an environment that enables a user to experience the thrill of gaming. The use of HMDs in other applications such as education and training, facility management are some of the drivers for the growth of the virtual reality market for HMDs.

However, the display latency and energy consumption affect the overall performance of the VR devices. Also, lack of movement and health concerns related to low resolution are the restraining factors for the growth of the virtual reality market.

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